Depreciation Reports

A strata depreciation report is a financial planning document required by law for most strata corporations in British Columbia. Under the BC Strata Property Act and BC Reg 43/2000, any strata with five or more strata lots must have a current depreciation report on file - and renew it every three years.

The report documents every common property component your strata is responsible for - roofing, cladding, windows, mechanical systems, parking structures - and projects what those components will cost to replace over a 30-year period. With that information in hand, your council can set contingency reserve fund contributions at the right level, and avoid the special levies that catch owners off guard.

Stratas operating without a current report face real consequences. Lenders may flag the gap during financing reviews. Prospective buyers and their realtors increasingly ask for it before completing a purchase. And under 2023 amendments to the Strata Property Regulation, the long-standing option to waive the requirement by a ¾ vote has been eliminated. If your strata has been relying on annual waivers, those no longer apply.

DG Engineering prepares strata depreciation reports for corporations across Vancouver, the Lower Mainland, the Sea to Sky corridor, and the Sunshine Coast.

What Our Depreciation Report Includes

Every DGE depreciation report is prepared by a registered professional engineer and covers the full scope of common property your strata owns and maintains:

• Building component inventory – we document all major components: roofing assemblies, exterior cladding, windows and doors, balconies, common area finishes, mechanical and electrical systems, drainage, landscaping elements, and underground parking where applicable.

• Component condition review – remaining service life is estimated for each component based on site observations and established industry benchmarks.

• 30-year cost projections – replacement costs are projected in current dollars and adjusted for inflation across the full planning period.

• Funding analysis – three funding models are provided so your council can make an informed decision about annual contingency reserve contributions.

• Replacement schedule – a year-by-year summary of anticipated major expenditures, so your council can plan well in advance rather than react to surprises.

• Council or AGM presentation – we can attend your council meeting or AGM upon request to walk owners through the report in plain language and take questions.

Who This Is For

BC law requires any strata corporation with five or more strata lots to maintain a current depreciation report. DGE regularly works with:

• Strata councils managing their own buildings

• Self–managed stratas without a property management firm

• Property management companies coordinating reports on behalf of their strata clients

We serve all common strata building types – low-rise wood-frame and concrete buildings, high-rise residential towers, and townhouse complexes – throughout Vancouver and the surrounding region.

The Process

From your first call to the completed report, here is what to expect:

1. Scope and proposal – We confirm your strata plan details and building type, then issue a fixed-fee proposal. Most engagements get underway within two weeks of authorization.

2. Site review – we visit the property to document common property components, note their condition, and flag anything that may need attention in the near term.

3. Report preparation – We compile the component inventory, cost projections, and funding analysis. The report is written in plain language – your council should be able to read and use it without an engineering background.

4. Delivery and presentation – The completed report is delivered as a PDF. We present the findings at your council meeting or AGM and remain available to answer questions from owners.

Why DG Engineering

Our team’s roots in building science are in depreciation reports and building condition assessments. Before DGE grew into a full-service building envelope practice, this was the foundational work: methodical component reviews, clear cost projections, and translating technical findings into language that strata councils and owners can actually use.

Our principals bring combined mechanical and building engineering backgrounds, direct construction experience, and years of working directly with strata councils, property managers, and owners across all building types. We understand what councils need from a depreciation report – and how to present findings in a way that is useful at the council table and at an AGM, where questions from owners can be pointed. Every DGE report is grounded in what was observed at your specific property.

DG Engineering is registered with Engineers and Geoscientists BC (EGBC).